Popularity Helps Buffer Apple From Chinese State-Media Attacks

Chinese Internet users are
crying foul over the perceived unfair treatment doled out to
Apple Inc by state-run media which has actively
criticised the smartphone maker for the past two weeks over its
warranty policy.

Chinese Internet users are
crying foul over the perceived unfair treatment doled out to
Apple Inc by state-run media which has actively
criticized the smartphone maker for the past two weeks over its
warranty policy.

Apple and Volkswagen AG were singled out on
March 15 by state-run China Central Television in its annual
corporate malpractice expose. CCTV accused Apple of having
discriminatory after-sales service in China compared to the rest
of the world.

Other state-run outlets have also run articles and
editorials criticizing Apple. On Wednesday, the Communist Party
mouthpiece, the People's Daily, ran an editorial attacking Apple
for being filled with "unparalleled arrogance".

The editorial was rapidly shared by thousands of micro
bloggers on Sina Corp's Weibo platform but panned by many users
who discredited the newspaper.

"Shameless People's Daily jealously scolding people... A
brain-dead product of the Cultural Revolution, old and so
disgusting," said one micro blogger.

Other users were upset at the targeting of a foreign firm
over a petty issue.

"We ordinary people feel that Apple is good and the
government is trash. There's obviously an implemented warranty
policy, why must (Apple) be treated differently?" said one user.

Another user asked where the newspaper was when it came to
reporting on corrupt on local ministries and poisonous milk.

"Do you wish to transfer our focus? Get the ordinary people
to curse and blame useless things? There's toxic air, toxic
water and tainted milk...We are not fools!" said another user.

The intense push-back from Internet users indicates the
strong reputation of Apple in China and shows the waning ability
of China's state propaganda apparatus to manage opinion online,
analysts say.

"Some users may feel that there is an agenda behind focusing
on Apple that has more to do with pointing the finger at a
famous international brand than the desire to highlight genuine
concerns for consumers," said Torsten Stocker, head of Monitor
Deloitte's Greater China consumer and retail practice.

Foreign firms are often taken to task very publicly in China
where their businesses and reputations are on the line. Late
last year, Yum Brands Inc's said its sales suffered
after CCTV ran a report on the use of antibiotics in its KFC
chickens.

That story went viral on Weibo, which has over 500 million
users, and many Weibo users criticized Yum's handling of the
incident. Facebook and Twitter are blocked in China and Beijing
faces the constant headache on how to balance censorship while
letting its citizens blow off steam.

Apple said in a statement on Saturday that it respected
Chinese consumers and that its warranty policies were roughly
the same worldwide with specific adjustments to adhere to
Chinese law.

"Apple has come out relatively unscathed in this situation
because consumers have had largely positive experiences with the
brand," said Benjamin Cavender, associate principal analyst at
China Market Research in Shanghai.

As for Volkswagen, CCTV said the direct shift gearbox
transmission was causing some cars to speed up or slow down
during driving.

Last week Volkswagen, which sells more cars in China than
any other foreign firm, said it would recall 384,181 vehicles
there to fix the problem.